Tax Levy | Stop IRS Garnishment | Flat Fee Tax Relief | Florida | Miami
Updated: Jun 30
HOW A TAX LEVY WORKS
This article is brought to you by the tax professionals at Flat Fee Tax Relief. Our teams are located in Clearwater, FL, and San Diego, CA. We provide valuable IRS tax debt help at a very affordable fee.
Tax debts are among the most difficult debts to eliminate but with experienced help tax relief can be accomplished. Just so you know, bankruptcy can’t wipe out all of your taxes owed, and taxing authorities have more power than other types of creditors to seize assets.
As an example, the IRS can use a tax levy to take property without the need to take you to court and win a judgment against you.
Fortunately, it’s possible to prevent and stop an IRS levy.
What Is a Tax Levy (IRS Garnishment)?
A tax levy is a procedure that the IRS and local governments use to enforce collection money of a tax debt. Tax levies can collect funds in several different ways, including taking funds from your bank account or garnishing your wages. Some of the most common strategies include:
Bank levies: The IRS can require your bank to prevent withdrawals from your account for 21 days and then withdraw funds from your account. The bank must then forward the money you owe to the IRS.
Wage garnishment: Your employer is required to hold back a portion of your pay and send it to the IRS until your debt is satisfied.
Property seizure: The IRS can take the property you own (such as a house or automobile), sell it, and apply the sales proceeds to your tax debt.
Reduced tax refunds: The IRS may hold money that would otherwise come to you via a refund. What’s more, the IRS can affect state and municipal refunds (the state will send funds to the IRS instead of to you).